JPMorgan Chase Consents to $388 Million Mortgage Securities Settlement
The bank agreed to pay $388 million to resolve investor claims over $10 billion of mortgage-backed securities. A judge must approve the deal.
4 reports on this incident · first at Aug 16, 2026, 12:29 p.m. ET
This matter is open. Agencies announce the actions they bring far more reliably than the ones they lose, so an action reported here may since have been settled, dismissed or decided without a further announcement.
Earlier reports
Aug 16, 2026, 12:55 p.m. ET
JPMorgan Chase Agrees to $388 Million Mortgage-Backed Securities Settlement
JPMorgan Chase & Co. has agreed to pay $388 million to settle a civil lawsuit brought by the Forth Worth Employees' Retirement Fund and other investors. The settlement was disclosed in a court filing Friday and must be approved by a judge.
According to the lawsuit, JPMorgan misled investors about the safety of $10 billion worth of mortgage-backed securities sold before the financial crash, and misled them about the appraisals, credit quality, and underwriting of the home loans that backed the certificates. The suit further alleged that after Lehman Brothers Holdings Inc. closed, the certificates were worth a maximum of 62 cents on the dollar.
The named respondent is JP Morgan Chase & Co. The matter is a civil proceeding, and the outcome is a consented resolution: the $388 million settlement, which remains subject to a judge's approval.
Aug 16, 2026, 12:42 p.m. ET
JPMorgan Chase Agrees to $388 Million Settlement Over Mortgage Securities Lawsuit
JPMorgan Chase & Co has agreed to pay a $388 million settlement to resolve a civil lawsuit brought by the Fort Worth Employees' Retirement Fund and other investors over mortgage-backed securities sold before the 2008 financial crash. The settlement was disclosed in a court filing Friday and must be approved by a judge.
The lawsuit alleged that JPMorgan misled investors about the safety of $10 billion worth of mortgage-backed securities sold before the financial crash, and that it misled them about the appraisals, credit quality, and underwriting of the home loans that backed the certificates.
The suit further alleged that after Lehman Brothers Holdings Inc. closed, the certificates were worth a maximum of 62 cents on the dollar.
The matter was resolved by consent, meaning the allegations were not tested at trial. The settlement remains subject to a judge's approval.
Aug 16, 2026, 12:29 p.m. ETFirst report
JPMorgan Chase Agrees to $388 Million Settlement in Mortgage Securities Lawsuit
JPMorgan Chase & Co has agreed to pay $388 million to settle a civil lawsuit brought by the Forth Worth Employees' Retirement Fund and other investors. The settlement, to which the bank consented, was disclosed in a court filing Friday and must be approved by a judge.
The lawsuit alleged that JPMorgan misled investors about the safety of $10 billion worth of mortgage-backed securities sold before the 2008 financial crash. The suit also alleged that the bank misled investors about the appraisals, credit quality, and underwriting of the home loans that backed the certificates.
The suit further alleged that after Lehman Brothers Holdings Inc. closed, the certificates were worth a maximum of 62 cents on the dollar.
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- Version 116 Aug 2026, 17:11current
First published.
- Version 116 Aug 2026, 16:29current
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- Version 116 Aug 2026, 16:42current
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- Version 116 Aug 2026, 16:55current
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